Another lackluster jobs report with 80K new jobs and an unchanged 8.2% unemployment, Keep in mind that we lost 815,000 jobs in Bush’s last month, but this still is not good enough. Republicans are intentionally sabotaging job-creation efforts thinking it will help them in the coming election. How do we stop this and get things moving?
In the chart below, the red lines on the left are the Bush years. On the right are the Obama years. Those red lines just keep going down, with a job loss above 800,000 as Obama takes office. Then you see the lines shooting up — the effect of the “stimulus.” The leveling off is the effect of the program’s end — the period of Republican job sabotage.
Romney In 2006
Watch Mitt Romney in 2006 explaining why a recovery takes time:
“I came in and the jobs had been just falling right off a cliff, I came in and they kept falling for 11 months. And if you are going to suggest to me that somehow the day I got elected, somehow jobs should have immediately turned around, well that would be silly. It takes awhile to get things turned around. We were in a recession, we were losing jobs every month.”
The U.S. economy has added more than 4.3 Million private sector jobs in the last 28 months, while losing
Dean Baker, writing at the Center for Economic and Policy Research, Job Growth Remains Weak in June, Unemployment Steady at 8.2 Percent,
Restaurant employment grew at an average rate of 29,000 in the winter months; it has grown by just 13,000 a month over the last four months. Retail employment grew by 22,000 a month in October through January. Since January, employment has fallen by a bit more than 1,000 jobs a month.
Construction employment grew by an average of 48,000 a month from November to February. In the last four months it has fallen at an average rate of 14,000 a month. This drop is difficult to reconcile with Census data that show construction spending up 1.1 percent from February to May.
While the overall picture in the establishment data was weak, there were some positive signs. The local government sector added 4,000 jobs in June indicating that employment may be leveling off. Manufacturing added 11,000 jobs, maintaining its modest rate of growth. The health sector added just 13,000 jobs, about half the normal pace. This is likely an anomaly, but if not, it would imply a slower rate of growth of health costs.
Isaiah Poole writes in, Jobs Report: Challenge Congress To Act, Obama To Fight,
As we’ve repeated time and again, the corruption of the Obama agenda by the corporatists and anti-government ideologues in both political parties began when the 2009 Recovery Act emerged as a $787 billion program, more than half of which was tax cuts, instead of the more than $1 trillion in additional spending that was needed to begin adequately repairing the damage of the 2008 financial crash.
Since then, Republicans have assaulted the economy at every opportunity, forcing an austerity agenda of budget-cutting at the very time that the federal government should have been stepping up its spending in key areas, both to bring our infrastructure up to 21st-century needs and to prevent layoffs of teachers, first responders and other essential public workers by cash-strapped state and local governments. From June 2009 to May 2012, 605,000 state and local public sector jobs were cut. If public sector jobs had instead grown at the same pace as the three previous economic recoveries, there would be an extra 1.2 million jobs, and that level of additional employment would have supported the creation of an additional 500,000 jobs…
When the White House and Democrats in Congress tried several times to pass elements of the American Jobs Act, $450 billion worth of job-creation initiatives, Republicans in the House voted as a solid bloc against the efforts, and Senate Republicans filibustered the legislation. The 2 percentage-point reduction in worker payroll taxes was the only major component that survived. Among the opponents is Romney, who has argued that cutting government spending at all levels is necessary to “help the American people” even though, as Tyson said, the teachers, firemen, and police who are being laid off “are American people who help other American people.”
Late last month, Congress pat itself on the back for passing a two-year surface transportation funding bill that is at best a status-quo stop-gap… The obstacle in the way was once again House Republicans, who refused to support the longer-term funding commitment needed by state and local transportation planners without numerous “poison pills,” including provisions that would have authorized construction of the Keystone XL pipeline without robust environmental review and would have ended federal regulation of hazardous coal waste disposal from power plants.
If it were not for congressional Republicans’ repeated obstruction or dilution of virtually every significant job-creation proposal sent to Congress since 2009, unemployment today would likely be under 7 percent instead of stubbornly persisting at around 8 percent. [emphasis added]
The Scariest Chart
Here is the chart of jobs doring this recession compared to previous recessions: